Business Culture of China
Kelly Blankenship
Jacqueline Boeckmann
CJ Hankins
Megan Maples
Monica Senter
Professor Juan Meraz
Abstract
At one time, the “Made in China” label was not a threat to United States businesses. In the 21st Century, however, things have changed. With the largest labor force in the world and a changing economy, the Chinese have become a world player in the global marketplace. This puts the United States in new position – setting up shop in a very different foreign land. For American business people to succeed in China, they must understand the culture and people of the country.
Although China is approximately the same size as the United States, China supports more than four times the population of the United States. Population estimates as of July 2004 were nearly 1.3 billion. The largest ethnic group found in China is the Han group, at nearly 92% of the total population, with another 55 recognized minorities. The most spoken of the ten major Chinese languages is Standard Chinese, or Mandarin.
The Chinese government has been through many changes and under the leadership of Chairman Mao Zedong, the People’s Republic of China was formed as a communist state. Chairman Mao Zedong is a great source of national pride for the Chinese people. Zedong’s successor, Deng Xiaoping was instrumental in promoting foreign ventures and investment with China. The current ruler, Hu Jintao has continued the global business progress and has made many changes to the economy, allowing for more entrepreneurship opportunities and increasing foreign incentives to do business on Chinese soil. Additional changes to the monetary system have been proposed in China, as they continue to have a philosophy of monetary protectionism.
Understanding their ancient traditions and customs is one very important aspect of conducting business in China. The Chinese are a patriarchal society and show much respect for their elders, especially the elder male in the family. Wives leave their families and join up with the husband’s family and a son is still preferred over a daughter.
Business customs, like social customs and family are very structured in China. Courtesy and punctuality are important virtues and the Chinese fear “losing face” in a business situation. A soft hand shake and lack of eye contact are not signs of weakness in the Chinese. Most Chinese business people do not expect Americans to understand every facet of their customs, and usually understand when social or business errors are made.
One member of our group was very fortunate to be able to interview a young adult Chinese woman, Tăng Didi and portions of the interview appear in the following report. Whenever one has the opportunity to learn from a native, it lends so much validity to the written sources available.
The 21st Century marketplace stretches around the globe. It is estimated that by the year 2040, China will have the largest economy in the world. Perhaps the most important thing to recognize and embrace is the diversity between the United States and China and remembers that the Chinese business place is filled with individuals, just like the U.S. business place, who are seeking to understand and be understood.
| The Methods To Smooth The US-China Trade Based On The China Industrial Cluster
Sun Weidong
Department of Economics and Trade, Jiangsu Finance and Economics College
8 Meicheng East Road, Huaian 223003, Jiangsu, China
Tel: 86-13056004220, 86-517-83858381
E-mail: dragoninmainland@yahoo.com.cn
William J. Lawrence
School of Management,
New York Institute of Technology
16W 61st, 8th floor,
New York, New York 10023
Abstract:
For some time now, China has relied heavily on industrial clusters to create an international competitive edge. China’s industrial clusters can best be characterized as a quantitative expansion, of labor-intensive and low cost production. While the program has been largely successful, China has increasingly had to cope with severe accusations from its trading partners who claim a policy of dumping and selling low quality products with flaws, and hazardous outcomes. Claims are also made that China has not been as mindful of its resource utilization, environment impact, and overall economic efficiency as it should be. China must therefore take effective measures to transform and update its emerging industrial clusters in order to insure its continued growth as a global force, as well as smooth the US-China trade. The thrust of this paper recognizes that opportunities exist for both the US and China to use this period as one of enhanced communication and cooperative ventures and planning initiatives. It is a hypothesis that cluster analysis offers a major vehicle that shows how all nations can begin to meet the needs of their people and do it in an environmentally and economically responsible manner.
Key Words: industrial cluster; smooth trade; the US-China
I. Introduction: Defining Clusters as an industrial optimization policy tool.
Michael E. Porter, an internationally recognized scholar on competitive strategy, is the Bishop William Lawrence University Professor, based at Harvard Business School. Professor Porter created the Cluster concept as a tool to better define industrial and geographic concentration both within and among nations. Professor Porter first introduced the concept of Clusters in 1990, which has gained wide acceptance throughout the world. Examples of its implementation as a public-private initiative currently exist in almost every country. Industrial clusters represent geographic concentration of interconnected enterprises in a particular industry that share related production inputs, specialized labor pools, distribution and communication channels, and network association. Clusters can be characterized as being integrated networks of production within strongly interdependent firms, including specialized supplier and extending to knowledge support agents such as universities, research institutes, and engineering companies. Clusters can also exist among bridge institutions such as brokers, and consultants as well as distribution channels and customers themselves, all of which are linked to each other in a value-adding production chain. The cluster approach focuses on the linkages and interdependence between actors in the overall network of producing products and services, contributing to the creation of innovation and a more efficient utilization of scarce resources. Porter's work on clustering was given a trade and global boost in a 1991 study by Paul Krugman who was able to show how the concept was also of importance to government trade planners and policy makers. While the original objective of clusters centered on how national state or regional economic development planners could increase the competitive environment, as globalization became an inherent part of the production and design process, more trade and international opportunities evolved.
[2] Paul Krugman, Geography and Trade Cambridge MA, London, MIT Press, 1991
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